Witnessing the Meltdown

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This article describes to proposals to offset the cost to raise the cap on the Alternative Minimum Tax (AMT).

The proposals are to:

Lower the limit on mortages elibible for interest deduction from $1 million to $350,000.
Capping the unlimited tax breaks which employers can take for providing health insurance. The proposal is to cap it at about $11,000 per employee.

These might work but I have two questions:

Are the the limits indexed to inflation? (This is the problem with the AMT).
When Bush passed his previous three tax cuts AFAIK no effort was made to find corresponding offsets. Why the effort to find offsets when the benefits are the middle-class and not the super-wealthy?

If the limits aren't indexed to inflation the problem comes around again in another < n > years and would end up pushing even more folks out of being ensured by their employers in addition to having a net effect of offsetting the AMT with tax increases on the middle-class.




	Witnessing the Meltdown Home Get Email Updates What I Do for a Living Email Me Admin Password Remember Me 13656 Curiosities served Share on Facebook				2005-10-12 11:45 AM Middle class to end up paying for AMT offsets? Previous Entry :: Next Entry Read/Post Comments (0) =+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+=+ This article describes to proposals to offset the cost to raise the cap on the Alternative Minimum Tax (AMT). The proposals are to: Lower the limit on mortages elibible for interest deduction from $1 million to $350,000. Capping the unlimited tax breaks which employers can take for providing health insurance. The proposal is to cap it at about $11,000 per employee. These might work but I have two questions: Are the the limits indexed to inflation? (This is the problem with the AMT). When Bush passed his previous three tax cuts AFAIK no effort was made to find corresponding offsets. Why the effort to find offsets when the benefits are the middle-class and not the super-wealthy? If the limits aren't indexed to inflation the problem comes around again in another < n > years and would end up pushing even more folks out of being ensured by their employers in addition to having a net effect of offsetting the AMT with tax increases on the middle-class. Read/Post Comments (0) Previous Entry :: Next Entry Back to Top